1st
Mar 2020
According to a management lettings platform, two bedroom properties in England provide sound investment opportunities for landlords because of their best rental yields.
pixabay.com
Two bedroom properties provide an average yield of 4.8%, whereas a three bed property average rental yield is 4.5%, one bedroom residences have 4.1%, and only 3.6% for four or more bedroom properties.
To achieve the maximum rental yield for two bed properties then investing in the North is the best option, with the North East’s current average rental yield of 5.5%.
The North West is not far behind with its average rental yield for two bedroom properties of 5.3%, then Yorkshire and the Humber at 5.2% and the East Midlands’ 5.1% and the West Midlands currently 5%.
In London the average rental yield for two bedroom properties is 4.5%, however it is the only region where this size of property does not provide the best yields against other number of bedroom properties; the best yield is achieved in the capital with 4.6% for one bed roomed properties.
For BTL investors looking for three bedroom properties, the North West comes out on top with a rental yield of 4.9% and the best region for four bedroom plus properties is Yorkshire and Humberside, with an average rental yield of 4.3%.
Calum Brannan, the CEO of the lettings platform, said: “As a landlord, maximising the profitability of your buy-to-let investment is as vital now as its ever been and property size and type are as important as location when it comes to doing so.
"While the two-bed property is traditionally the most popular amongst tenants and landlords due to the additional size without going overboard on costs, there is a slight regional variation in the capital.
"This is of course, due to the high rents you can secure in London even on a one bed and the overwhelming demand for properties that have seen even the smallest ‘studio flats’ rent for above-average prices.”
News Archive »